Focus of FM on green energy and implantation of circular economy will boost MSME competitiveness and create employment: FOSMI

Kolkata, Feb 1 (KNN) The Federation of Small and Medium Industries (FOSMI) has appreciated the announcement for extension of Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023 by Rs 50,000 crore.

“The announcement for extension of ECLGS till March 2023 expanded by Rs. 50,000 crore to total cover of Rs. 5 lakh crore, with the proposal of revamping of CGTMSE scheme for an outlay of Rs. 2 lakh crore may be good news for MSMEs,” said Biswanath Bhattacharya, President, FOSMI.

FOSMI said the infrastructure development in terms of road construction, housing, and specific proposals for development of start-ups would create employment.

“Most importantly, ambitious expenditures outlay on the defence sector may create more opportunities for development of MSMEs to get scope for defence manufacturing which is meant for creation of employment. Increase of incentives for start-ups is considered to be an encouraging proposal. Well, various infrastructure developments of Roads, Rails will be a great support for faster movement of logistics,” the industry body added.

Though there were some relaxations given on duty structure on specific items, but expectation of MSMEs on price reduction on essential raw materials were somehow found missing, highlighted FOSMI.

Bhattacharya said that the focus of Finance Minister on green energy and implantation of circular economy will definitely boost the MSME competitiveness and create employment. However, detailed guidelines to encourage MSMEs with required support need to be outlined.

Launching of the next phase of Ease of Doing Business EODB 2.0 and Ease of Living to improve productive efficiency of capital and human resources are considered to be good initiatives, he said.

Announcement of duty exemption on a few selected items like footwear, furniture, leather garments etc on exports will certainly incentivise MSMEs to boost export, FOSMI President said adding that in respect to direct taxes, announcement of updating of ITR within 2 years is a good decision as it will help with corrections required if mistakes are made during filing.

Altogether, in the budget scopes of announcement were expected interns of more fiscal benefit, incentives, ways and means for reduction of raw material prices together with mire considerations of direct and indirect taxes by MSMEs were not so diligently fulfilled, Bhattacharya concluded. (KNN Bureau)